Which of the Following Ratios Measures the Earnings of a Company

question 65

Multiple Choice

Which of the following ratios measures the earnings of a company on each sales dollar?

• A) Return on assets
• B) Return on sales
• C) Return on inventory
• D) Return on stockholders' equity

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Definitions:

Alternative Hypothesis

In statistical hypothesis testing, the hypothesis that suggests there is an effect or a difference, as opposed to the null hypothesis which suggests there is no effect or difference.

P-Value

The probability of obtaining test results at least as extreme as the results actually observed, assuming that the null hypothesis is correct.

Sign Test

A non-parametric test used to determine if there is a significant difference between paired observations.

Tied Pairs

Occurs when pairs of subjects have identical values for either the treatment or the control variable in matched-pairs experiments.